Adopting digital transformation successfully is a global theme within procurement. The emergence of technologies such as AI, blockchain and virtual reality means there are a multitude of ways that technology can be harnessed to improve efficiency. A recent study from CIPS found that almost 95% of procurement professionals believe that digital transformation will fundamentally change the way that procurement services are delivered. This blog post examines some of the challenges of adopting digital transformation and how to overcome them.
Understanding the capabilities and limitations of technology
It’s easy to envision new technology as the fix for all problems, without considering the end goals or the plan that needs to be put in place to make implementation successful. It’s important to consider what you hope to achieve through digital transformation, and to have a solid plan and defined end goals in place before committing to innovation. It’s also crucial that a digital transformation strategy involves all stakeholders within the business – considering multiple perspectives will greatly enhance effectiveness. A retail cost reduction consultancy can help to evaluate the effectiveness of current technologies and devise a robust digital transformation strategy.
Consider the value of digital transformation, not just the cost
Investing in new technology can be very expensive, so it’s important to look at the value that it could deliver beyond the initial outlay. Ideally digital transformation will lead to a far greater degree of automation, boosting efficiency. So aside from reducing costs by speeding up procurement processes, successful digital transformation should free up resources, allowing skilled procurement professionals to focus on higher level tasks that require expertise rather than mundane, repetitive items.
Changing the underlying procurement processes
A common mistake when implementing new technology is to leave old processes in place and just hope that digitizing them will speed them up. The real value and transformative impact of new technology can only be gained from revamping processes too. Successful digital transformation should enable organisations to achieve processes that were previously impossible if it is implemented strategically. A retail cost reduction consultancy can help to draw up a thorough procurement transformation strategy, which evaluates current procurement processes and their effectiveness.
Involving people in the implementation of digital transformation
One of the most challenging aspects of implementing digital transformation is obtaining buy-in from people who will be using the new technology. Planning is key here – it’s important to widely communicate the benefits and ultimate objectives of a digital transformation plan before it starts so that people understand why they are being asked to change. Adequate planning also involves focusing on deployment so that people understand how to use a new system properly, rather than reverting to their old way of working. A retail cost reduction consultancy can help with change management, using their skills and expertise to ensure that all stakeholders buy in to digital transformation, ultimately enhancing the chance of success.
At Optimise 5, we can offer retail cost reduction consultancy services, including support in e-procurement and digital transformation, as well as cost management audits and strategic cost reduction. When your company is offered a risk-free approach to improvement, what have you got to lose? Find out more here – www.optimise5.com